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Paying Fees from Escrow Account

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Question: 
If there are outstanding miscellaneous fees due (attorney fees, etc.) can we take the funds out of a customer's escrow account?
Answer: 

You will need to refer to your loan and/or security agreement, but most likely you cannot. The escrow belongs to the borrower and those balances are designated for specific items that must be paid under the direction of 3500.7 as long as the loan is thirty or less days past due.

First published on BankersOnline.com 7/12/10

First published on 07/12/2010

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